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Jeet B Bhayani (SEBI RA)

10th Sep · SEBI-Registered Analyst

India's advertising spending (AdEx) is poised for a significant uplift during the festive season, with additional expenditures of Rs. 5,400 crore (US$ 612.93 million) anticipated as consumer demand increases after the government’s Goods and Services Tax (GST) reform. Fast-moving consumer goods (FMCG) firms, making up 54% of AdEx, are anticipated to drive the increase following months of careful expenditure due to macroeconomic challenges. Industry leaders emphasized that FMCGs by themselves could add an extra Rs. 3,600 crore (US$ 408.62 million) over the festive season, with consumer goods and vehicles also expected to boost their advertising budgets. This rise occurs amidst a backdrop of a Rs. 7,000 crore (US$ 794.55 million) deficit in AdEx earlier this year after the prohibition on real money gaming. As per Mr. LV Krishnan, the CEO of TAM Media, the total AdEx effect from increased FMCG expenditure might attain 5.50% on a market size of Rs. 1,20,000 crore (US$ 13.63 billion), with 60% of expenditure generally focused from August through December. Zenith India’s CEO, Mr. Jai Lala, mentioned that the advantages of GST are anticipated to stimulate consumer demand and boost advertiser confidence, resulting in a minimum 10% additional benefit on top of the usual festive growth. The holiday season coincides with major cricket events like the World Cup, which have traditionally played a substantial role in AdEx. Industry experts concurred that with positive economic and seasonal conditions aligning, the 2025 holiday season might yield one of the most robust advertising increases in recent times.

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